Project #84017 - Answer the professor's response

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This is my discussion

There are several challneges that a business that wants to become a global contender faces. However, there are two challanges that i consider to be the greatest namely the industry’s pressure to go global and the tranferability of the company’s assests internationally. Industries that involve enormous fixed costs like building aircrafts among others exert more pressure on companies to go global (Elliott 8). This is because the huge fixed costs involved in product development can only be covered through selling in the global market. As pointed out earlier, the second challenge is the tranferability of the company’s assests into the global market. The competitive assests of many companies in emerging markets give them competitive advantage in their local markets only. It is worth noting that if a company’s globalization pressures are weak, then its competitive assets are not transferable to the global market. Such a company is better off defending its local market against intrusion by multinationals (Elliott 9).

In order to overcome industry’s pressure to go global , companys need to carefully study the industry in which they operate. This is imporatnt because it helps them understand the weaknesses and strengths of their competitors before going global. Companies can overcome the challenge of asset transferability by looking for markets that have the same characterisitics with their local markets.

This is the professor's response:You mentioned the 'pressure to go global' as a challenge. Can you cite an example of a company that might have felt the pressure to open globally and either did well or failed? By giving into pressure did they give up on the principles and mission?